- Will continue to implement prudent monetary policy
- Will adjust and optimise property policies at appropriate time
- Will keep yuan exchange rate basically stable
- External environment is complex and severe
- Will actively expand domestic demand conditions
- To also boost consumption of household products, promote tourism
- Will stabilise trade and foreign investment, enliven capital market to boost investor confidence
It’s safe to say that the post-Covid recovery hasn’t gone according to plan in China. In fact, it has been quite the opposite as domestic demand has basically sort of died. That has been a real issue over the last few months and local authorities are continually trying to do something about it.
But so far, their measures have not really panned out. We’ll have to see what Xi has up his sleeves next but just keep all this in mind when viewing the Chinese economy and their policy steps for the remainder of the year.